Sales and steep discounts have already begun with a majority of major retailers and a number of small boutiques putting wears on sale for as much as 50 percent. While a handful of the world’s big name luxury brands, like Hermes, have stood their ground and refused to lower their prices, an increasing number of lines are taking their prices down a notch.

In the beauty world, Estée Lauder, L’Oréal, and Procter & Gamble will all be coming out with lower-priced products. The mega brands are hoping to hold on to a cross section of their loyal customer bases that were hit hard by the recession by spending more resources on developing affordable beauty products. Small fragrance flacons of the brands’ bestsellers are also being produced.

As for fashion, in addition to the news that Aubade has had to cut 104 employees and that Adam Lippes has had to cut his menswear collection, Dolce and Gabbana will lower prices 10 and 20 percent, beginning with the upcoming spring season. The drop in price will take place across the board on both their main line and their diffusion line, D&G, although the Italian brand plans on maintaining the same quality and creative team.

To achieve the new price points, the design duo negotiated with their suppliers and manufacturers. The designers have said that “everyone, from button suppliers to mills to manufacturers, is doing their part.”

Gabbana said that he looks at the economic crisis as having two parts – one international and one social. “The first thing people say these days when they walk into a store is, ‘Nice, but how much?’ In this moment of uncertainty, people spend more willingly on travel or spas rather than on a new dress. We want to work for the final consumer.”